Euro opened the week testing the 1.3600 resistance but it didn’t have the strength to continue lower so it bounced up towards the 1.3700 level around which is trading at the moment. If the pair manages to hold above the 1.3680/1.3700 support area we will have to focus our attention on future resistance levels because another push towards the 1.3850 highs might be in play, closest resistance is the 1.3750 level that could act as intermediary resistance before a push towards July 24th highs at 1.3850. Conversely, yesterdays move might just have been a reaction after a first failed attempt to breach bellow 1.3600, if EurUsd is going to be pushed lower and the 1.3680/1.3700 area doesn’t hold we will see another test of the 1.3600/15 area followed probably by a move towards the 1.3550/60 support.

After 6 weeks of gains the Euro had it’s first week of loses against the US dollar. The week started with a down day but the pair recovered on Tuesday and printed a new high at 1.3850, after making a new high we saw a small retracement in the afternoon which turned into a full reversal on Wednesday and although some thought that the pair had found some strong support with Thursday’s move that was not the case as we saw another big red candle on Friday. Euro is now trading very close to a crowded area, full of support and resistance lines; a continuation of the south move will get the pair very close to the next support area around 1.3600/15, if this area gets breached we have to look at 1.3550/60 for more support and even lower down at 1.3460. Conversely we still have to look out for a possible uptrend move, so if the pair fails to make new lower lows early in the week we might as well start looking for resistance lines that could have an impact over a north bound move. First resistance line is just above current trading prices established on April 27th at 1.3680, higher up we have the 1.3750 level that could act as intermediary resistance before a push towards July 24th highs at 1.3850. As always we will keep an open eye on the markets moves and will act accordingly.

Euro recovered yesterday a few points by bouncing back up very close to the 1.3680 support line. So far today it seems that the pair is again moving south but most traders are expecting to see the US data before making a commitment to add more shorts or reverse back to longs. From a technical point of view a break bellow 1.3680 will put the pair under more pressure and bears will take control, if that happens next support area is around 1.3612 followed by the 1.3550/60 zone. If on the other hand the pair recovers some strength we might be in for another push north toward the 1.3830 resistance line and new highs above that, the 1.3900 round number and higher up 1.4000 should act as bull targets and can be considered resistance levels when/if the pair gets up there.

EUR/USD Technical View Euro made a new high on Tuesday at 1.3854 but gave back some points in the second part of the day to close just above 1.3800. Looking at the daily chart bellow, we can see that price has been making higher highs and higher lows but the upside momentum seems to have slowed down a bit, but this is to be expected after a strong rally. For the following days we expect a break above yesterday’s high at 1.3854, if price does break the above mentioned resistance the next bullish target might be the 1.3900 round number and on a longer term the 1.4000. Conversely a failure of making new highs will keep price in a consolidation period with possible signs of increased downside pressure, with that in mind bellow 1.3800 closest support level we can spot is the 1.3750 round number which if breached will give us a sign that a bigger move south might happen; lower down we have a previous resistance area now turned into strong support at 1.3660/80, this is the main mid-term bearish target.Resistance Levels

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